Facebook, Inc. (NASDAQ:FB) Q4 earnings reviewed

Facebook, Inc. (NASDAQ:FB) Q4 earnings reviewed

Facebook, Inc. (NASDAQ:FB) Q4 earnings reviewed

After a significant slump in October, Facebook’s market performance roared back to close out the Q4 earnings at historic highs that were in the neighborhood of the company’s mid-2018 peak. The company then proceeded to break those stock price records as the year turned over into 2020.

Facebook stock gained 56.6% overall in 2019, driven primarily by Wall Street perception that the company had managed to dodge any further serious fines and regulatory penalties after a disastrous 2018 headlined by the Cambridge Analytica scandal. That’s not to say that 2019 went entirely smoothly for Mark Zuckerberg’s company – Facebook remained relatively scandal-free until the company was assessed their record $5 billion fine in July, but then suffered several serious data breaches as well as questions about its ability to secure third-party apps and fact-check news stories. While there are signs that there may be serious internal issues at the company, none of this seemed to cause a ripple in the Q4 earnings.

Is Facebook really in trouble?

At the moment, advertisers are not jumping off of the social media giant’s boat. Quite the opposite; the company added a million in the fourth quarter, up to eight million total. The new privacy regulations don’t appear to be scaring them off.

And in spite of word of the company hemorrhaging users throughout 2019 as a result of the privacy and “fake news” issues, the monthly active users count has actually been continuing to grow since the Q4 earnings report of 2017. Growth in America and Europe has been unremarkable during this period, but still on an upward trend; the majority of the company’s current growth is coming from the Asia-Pacific region and other parts of the world.

Facebook does not appear to be in any imminent danger, with the Q4 earnings report indicating that the company is expecting any decrease in growth to stay in the “mid single digit percentage” for the next quarter. This is only the beginning of new regulatory challenges for the company, however, as countries around the world continue to adopt tougher data privacy regulations.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 217.40.

The projected lower bound is: 197.18.

The projected closing price is: 207.29.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.0846. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.91. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 13 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -59. This is not a topping or bottoming area. The last signal was a buy 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -5.870 at 207.190. Volume was 75% above average (neutral) and Bollinger Bands were 44% wider than normal.

Open     High      Low     Close     Volume___
210.190 210.860 206.510 207.190 25,030,810
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 210.22 209.19 193.43
Volatility: 52 31 31
Volume: 22,112,018 14,833,724 14,962,817

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FACEBOOK INC A is currently 7.1% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 6 periods.

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